AMERICAN NORTEL COMMUNICATIONS, INC.
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0000 X. XXXXXXXXX XX, XXXXX 000 XXXXXXXXXX, XXXXXXX 00000
PHONE 000 000-0000 FAX 000 000-0000
June 15, 2000
FUNDING AGREEMENT
This Agreement is made this 15th day of June, 2000, by and between Cynet,
Inc. ("CYNET" or the "Company"), a corporation duly formed pursuant to the laws
of Texas, with the address of 00000 Xxxxx Xxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000,
and American Nortel Communications, Inc., a corporation duly formed under the
laws of the state of Wyoming, with the address of 0000 Xxxx Xxxxxxxxx Xxxx,
Xxxxx 000, Xxxxxxxxxx, Xxxxxxx 00000.
1. This Agreement is to be used exclusively by the two aforementioned
parties for the expressed purpose of a funding arrangement between the
two parties. The parties agree to cooperate with each other and execute
such further documents as may be required for this transaction to
qualify for exemption from federal and state registration (including a
subscription agreement with acknowledgement of accredited investor
status and no present intent to make a distribution of the subject
securities).
2. The effective date of this Agreement shall be construed as the date of
"Bonafide Signatures" by both parties and their respective officers
and/or directors.
3. Confidentiality shall mean that the transaction will be kept exclusive
to the parties involved which shall be limited to its officers,
directors and/or agents, until such time that a bonafide closing has
been consummated.
4. The terms guiding the funding are such:
A. The sum total of the funding between the parties is known to
be $750,000.
B. The total amount of $750,000 will occur with a single closing.
C. The instrument of funding is known to be either a certified
check, United States of America drafted wire via the federal
reserve system or Company check.
D. The instrument to be purchased by the fundor is 750,000 common
shares and 250,000 warrants which will enable American Nortel
Communications, Inc. to purchase one additional share of the
Company's stock at an exercise price of One Dollar and fifty
cents ($1.50). These warrants are for a three-year duration
non-cancelable and non dilutive. These shares and the shares
underlying the warrants will be included in the Company's next
scheduled Form SB registration statement.
Page 2
Funding Agreement
June 15, 2000
E. The common stock will initially bear a restrictive legend.
F. CYNET will use its best efforts to effectuate a registration statement
which will register for sale 750,000 common shares for the fundor known
to be American Nortel Communications, Inc. and the shares underlying
the warrants. CYNET hereby agrees that it will complete the
registration and have it effective, in force and cleared by the SEC
("effective") on or before September 1, 2000. In the event that the
registration statement is not effective by the date of September 1,
2000 CYNET agrees that it will issue to American Nortel Communications,
Inc. an additional 75,000 shares of Common Stock for every 30 days the
registration statement is not deemed "effective."
G. This Agreement shall be construed and enforced in accordance with, and
governed by, the laws of the State of Arizona.
It is therefore agreed by the aforementioned parties that the intended funding
proceed on the merits written within the body of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first above written.
ACCEPTED: ACCEPTED:
CYNET, INC. AMERICAN NORTEL
COMMUNICATIONS, INC.
By: By:
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Xxxxxx X. Xxxxx Xxxx Xxxxxxxx
Vice President CEO
June 15, 2000 June 15, 2000
